Business
ROI (Return on Investment)
A performance measure used to evaluate the efficiency or profitability of an investment, or compare the efficiency of a number of different investments.
Why It Matters
Without measuring ROI, you are guessing what works. Understanding ROI allows you to double down on the actions, marketing campaigns, or habits that actually produce results and cut the ones that waste time and money.
Real-World Example
Spending $100 on ads that generate $500 in sales gives you a 400% ROI. Spending 2 hours learning a new software tool that saves you 10 hours a week is a high time-ROI.
Inspiring Quotes
"Time is more value than money. You can get more money, but you cannot get more time."
How to Apply It This Week
- 1Identify your biggest current investment of time or money.
- 2Track the specific outcome it produces over 30 days.
- 3Calculate if the return is greater than the cost.
- 4Eliminate low-ROI activities from your schedule.
Common Misconceptions
People think ROI only applies to money. Your time, energy, and attention are investments too, and they often have a much more critical ROI than cash.